A dossier on the issue, seen by the Express newspaper, includes over 1,000 complaints about CarillionAmey, the private firm tasked with housing forces personnel.
The company is alleged to have failed to properly deal with poor living conditions ranging from m ould, broken central heating and cookers and rat infestations to air vents being blocked with filth.
Anne-Marie Trevelyan, a Conservative MP leading the Public Accounts Committee hearing on the matter, has said:
"I am concerned in the wider context the MoD is not considering the cost of retention and the value of the human capital - our soldiers, sailors, and airmen - without whom the biggest ships, fastest jets and toughest tanks are no use at all."
She also said she would continue to monitor the issue to make sure that CarillionAmey help service personnel to live in good quality housing.
For their part, a CarillionAmey spokesperson has said:"CarillionAmey has acknowledged that the service delivered during the early stages of the housing contract was not at the level service families expect and deserve and for this, we apologise" and that "We have since implemented a robust improvement plan."
The MoD has since said:"The issue of service housing and its maintenance is of huge importance and we have invested £660 million in service housing over the last six years.
"Since April, the Government’s Decent Homes standard has been applied to service family accommodation (SFA) and no properties which fail to meet that standard are now allocated to personnel and their families."
"The vast majority of SFA is at or exceeds the Decent Homes standard and we have a rolling programme to improve the proportion further.
"Any families who remain in a home that falls below the standard are charged at a reduced rate and are able to request a move to an alternative property should they prefer to do so."
"Defence Secretary Michael Fallon has also been very clear with CarillionAmey that their performance in maintaining SFA has to improve if they are to retain their contract.
"Since he delivered this message to senior executives of the company in a meeting earlier this year, the indications are that their performance has improved significantly. However, the MOD will continue to monitor the situation closely.
"We recognise the importance of publicly provided accommodation to Armed Forces personnel and their families, and continue to look at ways we can improve standards of Service Family Accommodation and Service Living Accommodation.
"CarillionAmey has developed an aggressive plan to improve the quality of service to personnel and their families."